Finance staff warned the council that costs for outside auditors and bookkeeping consultants had risen sharply as the city rectified past accounting issues. The finance director said the current fiscal year included higher-than-budgeted professional-services charges used to catch the city’s books up for audit.

At the same session, council members raised a separate banking problem: staff reported a cashed check — approximately $18,000 — that the city considers stolen after it was altered and cashed. City attorneys and finance staff said the bank would not reimburse the amount because an account protection clause and the bank’s time limits for dispute raised a legal bar. Council discussion also focused on ongoing monthly “analysis” and service fees paid to the city’s bank and the council asked staff to explore alternative banking partners and to evaluate fees and pension-custody services from other banks.

Why it matters: High audit and consultant spending increase near-term budget pressure; the unresolved stolen-check claim has prompted council requests to diversify banking providers and to question recurring bank charges.

Details: Finance staff reported paying for multiple audits and consultants this year to put the books in order; one off-year cleanup invoice was described as materially higher than prior audits. The finance director said staff expect to reduce consultant reliance in the 2026 budget.

Council reaction: Members asked for a review of banking relationships and suggested seeking alternative custodial or investment arrangements for pension assets. Staff indicated they are evaluating possible alternative banking partners and would report back with proposals.